XRP Falls on Broader Altcoins Slide, Capital Rotation
Ripple (XRPUSD) fell by 2.50% over the last 24-hour trading session to $2.03, underperforming the broader crypto market as altcoin slides pushed Bitcoin market dominance.
Today, XRP spot ETFs saw $38 million in inflows as investors rotated from BTC/ETH. However, price remained depressed as risk-off sentiment limits upside potential.
XRP is gaining institutional traction through ETFs and banking partnerships, but 17% negative price action over 60 days reflects lingering scepticism, crypto analysts said.
According to data from the crypto exchange, XRP dropped while trading volume surged by 175% to $3.08 billion on Monday. The price decline dragged the market value of XRP to $123.69 billion amidst selling pressure in the crypto market.
The total market cap of all crypto dipped on Monday, settling at $3.09 trillion as Bitcoin and Ethereum continue to struggle. Demand for altcoins is generally down due to risk-off sentiment. XRP’s dip reflects regulatory hesitancy, technical profit-taking, and sector-wide caution.
While ETF delays and Bitcoin’s dominance weigh on the short term, XRP’s $1.60–$1.40 support zone remains pivotal for structural integrity. The SEC delayed decisions on T. Rowe Price and Canary crypto ETFs (including XRP-linked products) by 45 days, citing the need for a deeper review.
This follows earlier ETF inflows for XRP but signals lingering regulatory friction. Prolonged uncertainty around institutional adoption tools (ETFs) reduces short-term bullish catalysts. XRP remains sensitive to SEC actions due to its ongoing legal history.
Upside Potential Spotted
On the technical side, XRP retested its 61.8% Fibonacci support at $2.02 after failing to hold the 50-day average of $2.04. The relative strength index signals show neutral momentum, but volume surged 171% during the drop.
Crypto analysts said a close below $2.02 could trigger further downside to $1.90. XRP’s drop reflects capital rotation into Bitcoin and low-risk bets amid macro uncertainty. However, XRP spot ETFs still saw $38 million in inflows last week, suggesting selective institutional interest.
The market is seeing upside potential from the regulatory angle and significant institutional adoption. XRP and Solana spot ETFs attracted $79 MILLION combined last week, while Bitcoin and Ethereum ETFs saw $749.6 million in outflows. This shift signals growing institutional interest in altcoins, partly driven by XRP’s regulatory clarity and Solana’s DeFi/NFT adoption.
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